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HelloFresh SE — Investor Presentation 2020
Mar 2, 2021
206_ip_2021-03-02_f607d18a-6d94-417b-bfa1-58bc78277ab1.pdf
Investor Presentation
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This document has been prepared by HelloFresh SE (the "Company" and, together with its subsidiaries, the "Group"). All material contained in this document and information presented is for information purposes only and must not be relied upon for any purpose, and does not purport to be a full or complete description of the Company or the Group. This document does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities of the Company, nor shall it or any part of it form the basis of or be relied upon in connection with or act as any inducement or recommendation to enter into any contract or commitment or investment decision or other transaction whatsoever. This document is not directed at, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. No representation, warranty or undertaking, express or implied, is made by the Company or any other Group company as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein, for any purpose whatsoever. No responsibility, obligation or liability is or will be accepted by the Company, any other Group company or any of their officers, directors, employees, affiliates, agents or advisers in relation to any written or oral information provided in this document or in connection with the document. All information in this document is subject to verification, correction, completion, updating and change without notice. Neither the Company, nor any other Group company undertake any obligation to provide the recipient with access to any additional information or to update this document or any information or to correct any inaccuracies in any such information.
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This document contains forward-looking statements relating to the business, financial performance and results of the Company, the Group or the industry in which the Group operates. These statements may be identified by words such as "expectation", "belief', "estimate", "plan", "target" or "forecast" and similar expressions, or by their context. Forward-looking statements include statements regarding: strategies, outlook and growth prospects; future plans and potential for future growth; growth for products and services in new markets; industry trends; and the impact of regulatory initiatives. These statements are made on the basis of current knowledge and assumptions and involve risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in these statements, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this document or the underlying assumptions. No obligation is assumed to update any forward-looking statements.
This document includes certain financial measures not presented in accordance with IFRS, including, but not limited to, AEBITDA. These financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to result for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company's presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See the appendix for a reconciliation of certain of these non-IFRS measures to the most directly comparable IFRS measure.
THE WORLD'S LEADING, FULLY INTEGRATED FOOD SOLUTIONS GROUP
〜
Strong growth in customer base continued in Q4 to 5.3m
5.29 M active customers in Q4 2020
- Up 78% YoY $\bullet$
- Continued capacity expansion $\bullet$ allowed for sequential growth in both operating segments
Order Rates increased further in Q4
- Double digit year-on-year growth $\bullet$ with further expansion in Q4 vs. 3.9 in Q3
- Incremental impact from hard $\bullet$ lockdown in a number of our markets from mid-November
Average order value up year-on-year and sequentially
- US key driver of increase $\bullet$ in AOV in Q4
- Less price incentives due $\bullet$ to a still capacityconstrained environment
- Strong take-up of $\bullet$ Christmas/ seasonal offerings further supporting AOV across most markets
First time $> \epsilon$ 1bn revenue in one single quarter in Q4
HELLO
ERESH
- Q4 constant currency $\bullet$ revenue growth of 126% highest growth quarter for the year
- Despite ongoing capacity $\bullet$ constraints in the US and selected Intl markets, > 100% growth in both segments
Full Year Results 2020
Despite ongoing COVID effects and ramp-up of several fulfilment centers, Q4 2020 contribution margin has exceeded prior year levels
- Meaningful expansion of $\bullet$ contribution margin in Q4
- Driven by (i) less price $\bullet$ incentives, (ii) ongoing procurement efficiencies, (iii) gradual normalization of fulfilment expenses
Marketing as % of revenue meaningfully down YoY despite strong ongoing customer growth
HELLO
ERESH
- Continued attractive $\bullet$ CACs
- Restrained marketing $\bullet$ spend due to capacity constraints and seasonality
Full Year Results 2020
- Excl. SBC
•
AEBITDA expansion to more than €500m for FY2020
$\bullet$
$\bullet$
Similar AEBITDA contribution by both operating segments
Industry-leading FCF generation allows us to fund our growth investments internally
- FCF of $\epsilon$ 499m in 2020 $\bullet$
- Allowed us to finance the Factor acquisition $\bullet$ without relying on external financing
- Year end cash levels of $E$ 729m allows driving 2021 growth investments, while maintaining strong balance sheet:
- Fulfilment center expansion
- Ramp-up of Factor
- At least 2 new geographies
- Further rollout of markets and brands
Free Cash Flow (in $\epsilon$ Millions & in % of revenue)
14
Group: Operational and Financial KPIs
HELLO Full Year Results 2020
- Revenue post promotional discounts, customer credits, refunds and excluding VAT; YoY stands for year on year and compares the respective quarter with the same quarter of the previous year 2. Contribution margin is defined as revenue less cost of goods sold and fulfilment expenses, excluding share-based compensation expenses 3.AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses; AEBITDA margin is defined as% of revenue 4. Based on constant currency
Profit and Loss Statement
| 3 months ended | 12 months ended | Change % | ||||
|---|---|---|---|---|---|---|
| 31-Dec 20 | 31-Dec 19 | YoY | 31-Dec 20 | 31-Dec 19 | YoY | |
| Revenue | 1,108.5 | 511.8 | 116.6% | 3,749.9 | 1,809.0 | 107.3% |
| Procurement Expense | (361.5) | (178.3) | 102.8% | (1, 276.7) | (640.5) | 99.3% |
| Fulfilment Expense | (407.6) | (185.4) | 119.9% | (1, 422.1) | (652.0) | 118.1% |
| Contribution Margin1 | 339.5 | 148.1 | 128.24% | 1,051.1 | 516.5 | 103.5% |
| % of Revenue | 30.6% | 28.9% | 1.7pp | 28.2% | 28.7% | $(0.5)$ pp |
| Marketing Expense 1 | (143.1) | (92.0) | 55.5% | (469.7) | (405.2) | 15.9% |
| G&A 1 | (39.7) | (43.8) | $(9.4)\%$ | (146.0) | (132.8) | 10.0% |
| Other Operating Income (Expenses) | (3.8) | (2.2) | 72.7% | (9.5) | (4.3) | 108.1% |
| EBIT | 153.2 | 12.3 | nm | 425.9 | (25.8) | nm |
| % of Revenue | 13.8% | 2.4% | 11.4pp | 11.4% | $(1.4)\%$ | 12.8pp |
| Financial Result | (9.1) | 4.2 | $(316.7)\%$ | (29.7) | 20.5 | $(235.9)\%$ |
| EBT | 143.0 | 16.5 | 766.7% | 395.8 | (5.3) | nm |
| Income Tax (Expense) / Benefit | (4.2) | 0.7 | $(700.0)\%$ | (26.7) | (4.8) | 709.0% |
| Net Income / (Loss) | 138.8 | 17.2 | 707.0% | 369.1 | (10.1) | nm |
| Reconciliation starting at EBIT | ||||||
| EBIT | 153.2 | 12.3 | nm | 425.9 | (25.8) | nm |
| D&A | 13.4 | 11.6 | $(15.5)\%$ | 47.1 | 41.5 | $(13.5)\%$ |
| EBITDA | 166.6 | 24.0 | 594.2% | 473.1 | 15.7 | nm |
| % of Revenue | 15.0% | 4.6% | 10.4pp | 12.6% | 0.9% | 11.7pp |
| SBC | 5.8 | 4.6 | $(26.1)\%$ | 24.0 | 18.8 | $(27.8)\%$ |
| Special Items | 1.4 | 10.1 | 86.1% | 8.2 | 12.0 | 31.9% |
| AEBITDA | 173.8 | 38.6 | 350.2% | 505.2 | 46.5 | 986.2% |
| % of Revenue | 15.7% | 7.5% | 8.0pp | 13.5% | 2.6% | 10.9pp |
Balance Sheet & Cash Flow Statement
| In MEUR | As at 31-Dec-20 | As at 31-Dec-19 | |
|---|---|---|---|
| Assets | |||
| Non-current assets | 603.6 | 288.7 | |
| Cash and cash equivalents | 729.0 | 193.7 | |
| Other current assets | 193.0 | 87.8 | |
| Total assets | 1,525.6 | 570.2 | |
| Equity and liabilities | |||
| Equity | 656.0 | 245.3 | |
| Non-current liabilities | 349.8 | 111.1 | |
| Current liabilities | 519.8 | 213.8 | |
| Total equity and liabilites | 1,525.6 | 570.2 | |
| In MEUR | 2020 | 2019 | |
| Cash and cash equivalents at the beginning of the period | 193.6 | 193.9 | |
| Net Cash flows from operating activities | 601.5 | 42.2 | |
| Net Cash flows from investing activities | (210.5) | (29.0) | |
| of which M&A | (128.3) | $\overline{\phantom{000000000000000000000000000000000000$ | |
| Net Cash flows from financing activities | 163.4 | (14.8) | |
| Effects of exchange rate changes and other changes on cash and cash equivalents | (19.0) | 1.3 | |
| Cash and cash equivalents at the end of the period | 729.0 | 193.6 |
| Types of share | Ordinary shares |
|---|---|
| Stock exchange | Frankfurt Stock Exchange |
| Market Segment | Regulated Market (Prime Standard) |
| Number of shares issued | 173,864,415 |
| Number of shares outstanding | 173,537,352 |
| Employee incentive plan | Options | RSU | Total |
|---|---|---|---|
| Vested (in mn) | 3.99 | 0.20 | 4.20 |
| Unvested (in mn) | 3.66 | 0.55 | 4.21 |
| Outstanding (in mn) | 7.65 | 0.76 | 8.41 |
| WAEP 1 (in EUR) Vested | 8.98 | ||
| WAEP 1 (in EUR) Unvested | 14.28 | ||
| $WAEP1$ (in EUR) | 11.51 | 10.47 |
| 1 | $\overline{2}$ | 3 | 4 | 5 | 02.03.21 2020 Earnings Call 02.03.21 Deutsche Bank DACH Roadshow |
03/04.03.21 Citi UK Roadshow | 05.03.21 Stifel US Roadshow | |
|---|---|---|---|---|---|---|---|---|
| March | 8 | 9 | $10\,$ | 11 | 12 | 09/10.03.21 Stifel US Roadshow | ||
| 15 | 16 | 17 | 18 | 19 | ||||
| 22 | 23 | 24 | 25 | 26 | 23.03.21 Credit Suisse Consumer Retail Conference 25.03.21 J.P. Morgan Global ESG Conference | |||
| 29 | 30 | 31 | 1 | $\overline{2}$ | ||||
| April | 5 | 6 | $\mathbf{7}$ | 8 | 9 | |||
| 12 | 13 | 14 | 15 | 16 | ||||
| 19 | 20 | 21 | 22 | 23 | ||||
| 26 | 27 | 28 | 29 | 30 | ||||
| Nay | 3 | $\overline{4}$ | 5 | $6\,$ | $\overline{7}$ | 04.05.21 Q1 Earnings Call | ||
| 10 ° | 11 | 12 | 13 | 14 | ||||
| 17 | 18 | 19 | 20 | 21 | ||||
| 24 | 25 | 26 | 27 | 28 | 26.05.21 General Shareholders' Meeting | |||
| 31 | 1 | $\overline{2}$ | 3 | 4 | ||||
| June | 7 | 8 | 9 | 10 | 11 | |||
| 14 | 15 | 16 | 17 | 18 | ||||
| 21 | 22 | 23 | 24 | 25 | ||||
| 28 | 29 | 30 |